Life Insurance Policy in India with High Returns

What is the Need for the Life Insurance Policy in India?

Everyone’s priority is to look for the life insurance policy in India with high returns because life insurance plans not only provide comprehensive protection during the policy term but also offer maturity/survival benefits as per the policy’s T&Cs, and tax benefits as per the prevailing tax laws. These plans are necessary for financial planning as the high returns received from these plans can help the nominees pay their rent, child’s fees, maintain their existing lifestyle and pay off any remaining loans in your absence. In case you outlive the policy term, you can use the large benefit amount to fulfil your financial goals, secure your retirement, go on an expensive vacation, or beat inflation.

Features of the Life Insurance Policy in India with High Returns

Following are the several features of the life insurance policy in India with high returns:

• Low Premiums: You can get a large life cover at affordable premiums with the life insurance plans in India. For example, you can buy term plan for a 1 crore life cover covering till 60 years at just Rs. 550, payable per month.

• Long Policy Term: With the life insurance plan, you can get a policy coverage for a long term till 99 or 100 years of age as per the policy details. This way, you can secure your family members for your whole life.

• Wealth Creation: The life insurance policy in India with high returns provides policyholders with a chance to create wealth for their financial goals and beat the potential inflation in the future.

• Rider Benefits: You can enhance the base coverage of your life insurance at nominal premiums using additional riders like waiver of premiums, accidental death, accidental total permanent disability, hospicare benefit, critical illness, and terminal illness. 

• Tax Benefits: You can claim life insurance tax benefits under several sections as per the prevailing tax laws of the Income Tax Act of 1961.

• Loan Facility: Most of the life insurance policy in India with high returns offer a loan facility that you can avail of in times of financial emergencies. This provides liquidity in times of financial crisis while the policy continues its coverage.

• Life Stage Benefits: Several life insurance plans offer the option of increasing the sum assured during the policy term, with the change in the policyholder’s life stage. For example, you can increase the sum assured by 50% on marriage and by 25% on the birth of a child.

How Can the Life Insurance Policy in India with High Returns Benefit You?

Here is a list of all the benefits of buying the life insurance policy in India with high returns:

• Family’s Financial Protection: The life insurance plan provides financial protection for the family of the policyholder by offering them a death benefit in case of the policyholder’s death. Your family can use the payout to maintain their current quality of life and pay for their rent and other expenses in your absence.

• Child’s Higher Education: With the life insurance policy in India with high returns, your child can pay for their higher education in your absence, use the amount to fund their business ventures, or pay for their wedding.

• Post-retirement Planning: In case you outlive the policy term, the maturity benefit can help you live your post-retirement life in a financially independent manner. In the event of your unfortunate death, your spouse can use the benefit amount to secure her retirement life in the absence of monthly income.

• Pay off Loans and Debts: In case of your unfortunate death, your family can pay off any loans or debts you may have taken. This way, they won’t be burdened by the weight of loans that may fall on them in your absence. 

• Financial Emergencies: You can use the loan facility to fund any medical or financial emergencies that may arise during the policy term or pay for the hospital bills and medical costs using the rider sum assured in case of an eventuality.

How To Buy the Life Insurance Plan in India?

You can buy the life insurance policy in India with high returns by following the below-mentioned steps:

• Step 1: Go to the life insurance page

• Step 2: Select the type of insurance you want to buy

• Step 3: Enter your name, gender, phone number, and DOB

• Step 4: Click on ‘View plans’ to see the available plans

• Step 5: Select the most suitable plan and proceed to pay

Points to Consider Before Buying the Life Insurance Policy in India with High Returns

• Type of Life Insurance: The type of life insurance you purchase makes the biggest impact, as some life insurance plans might not offer a large return compared to other plans. For example, a ULIP plan may provide a bigger return than an endowment plan.

• Risks Involved: There are various life insurance plans that invest a part of the premiums in market-linked funds or provide bonuses through participation in the company’s profits. These risks can increase your total benefit amount and can help you grow a bigger corpus. You can select the ideal funds for investing as per your risk appetite. 

• Premium Payment Options: The life insurance policy in India with high returns often offer several premium payment options like monthly, quarterly, annual, and semi-annual premium payment modes for the entire or limited policy term.

• Payout Options: Many life insurance policies in India provide the option of receiving the payout in a lump sum, in monthly income, in a combination of lump sum and monthly income, or in increasing instalments.

• Dual Benefits: Some life insurance plans offer dual benefits of death and maturity benefits while others don’t. Make sure you understand the benefits offered under each plan before purchasing to avoid any confusion.

Final Thoughts

If you want to buy the life insurance policy in India with high returns, you need to assess your needs and future financial goals and potentially refer your financial advisor to understand which is the right plan for you. It is important to choose the life insurance plan as it will cover your family’s financial goals in case of your death and create wealth for your future goals in case of survival.

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